US dollar is heading higher today, thanks in large part to the fact that risk aversion is setting in. Stock markets around the world are falling, and there are global economic concerns with the latest news out of China.
The latest economic data out of China is weighing on markets around the world today. Chinese data was weaker than expected and risk aversion is setting in as a result. High beta currencies are lower, and the US dollar is on the rise as Forex traders look for safe haven and stability.
Also helping the greenback in the midst of this demand spurred by risk aversion is the fact that Argentina devalued its peso and lifted restrictions on US dollar purchases. As a result, there is a rush to acquire greenbacks in the country, which continues to battle its own economic woes.
With all of this concern about the global economy, there is little appetite for risk to boost demand for other assets.
At 15:47 GMT the US dollar index is up to 80.4650 from the previous close at 80.4380. EUR/USD is lower, dropping to 1.3681 from the open at 1.3698. GBP/USD is also lower, falling to 1.6504 from the open at 1.6670. USD/JPY is down, too, dropping to 102.2420 from the open at 103.1830.
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